1. Problem Definition.
One of many small/medium projects my company carrying out, in order to prepare to the operation phase of the gas plant, is a “boat project”, is a fully equipped boat that need to be facilitated in order to use it in maintenance activities of the single point mooring (SPM).
More than one option has been considered and each has its own cost, health & safety, operability and social impact. Which one would be a better option?
2. Identify the Feasible Alternative.
The following are the two alternatives;
- Outsource the project to SME entrepreneur
- In-house the project
Multi attribute decision making with compensatory models will be used.
3. Development of the Outcome for Alternative
Qualitative comparative analysis of the alternatives will examine their potential impact on the previously mentioned attributes.
Below is the comparison for alternatives:
Table1: Alternatives and correspondent attributes
Table2: Weight estimate of each attribute relative to the option
After setting the alternatives, attributes and relative weight, Table 1&2 above, dimensionless value is calculated and presented in Table 3.
Table3: Dimensionless value correspondent to each alternative and its attributes
Table 4 below shows weights of attribute. These will be used in section 5.
4. Selection of the Acceptable Criteria.
Highest dimensionless value is the selection criteria.
5. Analysis and Comparison of the Alternative.
Table5 above shows comparison and analysis of the two alternatives.
6. Selection of the Preferred Alternative.
It is obvious that the “boat project” to be done in-house.
7. Performance Monitoring and the Post Evaluation of Result.
After this initial result, a more detailed cost estimate can be done, like NPV, in order to make sure it is the better option.
- Making Decisions with Multiple Attributes: A case in sustainability Planning, Retrieved June 9, 2014, from http://gbr.pepperdine.edu/2012/08/making-decisions-with-multiple-attributes-a-case-in-sustainability-planning/
- A Set of Tools for Multi-Attribute Decision Making, Retrived on June 9, 2014, from http://www.students.iitmandi.ac.in/~deepak_sharma/maked/tutorial.html
- Sullivan, G. W., Wicks, M. E., &Koelling, C. P.(2012). Engineering economy 15th Edition. Chapter 14 – Decision Making Considering Multiattributes., pp.551-569.